European sales rise 6% in Richemont Group report

The Richemont Group has reported modest overall retail sales growth of 1% in the five months ended August 31, with European regions generating a 6% boost in sales.

The report, published ahead of the Group’s Annual General Meeting, highlighted a 2% growth in jewellery sales at constant exchange rates versus 2013, with the actual figure levelling out at 0% based on current rates.

Currency fluctuations, especially with the US dollar and the Yen, impacted the Group’s sales considerably. Strong growth of 12% in the Americas was curtailed by a weakening dollar leading to an actual increase of 7%.

There was no movement in sale in the Asia-Pacific region, which when taking into account exchange rates saw a 2% dip in sales. Japan suffered an 8% drop in sales, attributed to strong sales in the previous period in the lead-up to a sales tax hike, which resulted in a disastrous 14% dip.

According to the report, European and Middle Eastern sales continue to be fuelled by tourism, with retail sales growth maintaining a lead over wholesale sales overall.

Richemont’s interim results for the six-month period to September 30 2014 will be released in November 2014.